United States
Detailed explanation of our acquisition plan in our first target market.
Acquisition Strategy
Real Estate Acquisition Strategy
Our strategy is built from market research and data collection from different sources such as Reventure Consulting, Redfin, Realtor, and Freddie Mac. There are localized trends that we are seeing like the drop in mortgage applications, pivots in short term rentals to long term, and properties staying on MLS for longer than 100 days. We are open to location, but primarily looking to purchase in the South East of the United States. The examples below are from the perspective of Atlanta, GA.
Location Breakdown
After reviewing market data from the our many sources we determined that the locations we wanted where Atlanta, GA; Raleigh, NC or Austin, TX. We share our market research with our NFT holders in our discord community regularly.
Atlanta
One of our focus locations is Fulton County where you can find many multi-unit properties located near elementary & high schools as well as colleges. Many properties in the area are in great neighborhoods that would be great for renting to families that need 2 to 3 bedrooms, college students. There are also major businesses in that area like the Mercedes Center which has a great source of employees that are looking to reduce their commute.
Evictions
We are using Atlanta's metro data tools to track evictions being registered. You can follow along with us as well as we use this data to monitor when properties will begin to consider forbearance or where we will be making cold calls to start offering "Subject To" purchases.
Price/Earnings Ratio
Using data from Zillow we can start to see what it would look like in Atlanta, GA because the home affordability index is starting to show no one can afford to buy the homes in the area that actually live there. This doesn't account for those migrating to Atlanta, but with the recent drop in loan applications. It is safe to assess that migrations have slowed or stopped in comparison to the 2020-2021 housing boom.HAI (House Affordability Index) is the measure of the median income from a location (better to look in specific locations) or zoomed out the whole USA (not useful in my opinion). HAI = ( Median Family Income / Qualifying Income ) * 100. (i.e. if a home costs $3k/m but the median citizen can only afford $2,000/m then it is not affordable)Price/Earnings Ratio: Re:venture ChartsThe yellow line represents the average. When using the P/E of the Atlanta, GA market you can see that we are at a 6.8x of what the average P/E should be. This gives us a potential downward crash (some will say correction) of 36.2%. In our opinion anything 20% or greater is a crash and not a correction. This is where we will start buying property.
Median List Price
As you can see from the chart below the metrics from the P/E are starting to make more sense. The median listing prices of homes in the Atlanta area are starting to come down. This will only continue with rate hikes by the federal reserve and the longer properties sit on the market without offers.Media List Price Re:venture Charts
Debt
All properties will be purchased with a zero debt policy. This means no banker or institutional debt will be acquired to finance any property as the Whimsy mission is to be the proof that communities can work together to succeed together.
Rental Management
Property management will be handled by Tranquilo Living .LLC. This is Whimsy's property management arm of the business. Any properties that Tranquilo Living can not manage due to licensing or being out of jurisdiction, a third-party management provider will be put in place.
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